Highlights from March 2025 Event on Natural Capital Investing in Luxembourg, Sponsored by Luxembourg Agribusiness Association and DANA Ltd.
ATLANTA, GA — Entitled, “The Emergence of Natural Capital Investments,” Fu’s presentation introduced the rapidly growing market of nature-based services can provide income to the investor while also bringing sustainable benefits to society and to the environment. These include, Fu explained, the establishment of environmental mitigation banks, creation of carbon credits, sale of conservation easements, and development of on-site renewable projects such as solar farms. These natural capital solutions give the forestland owner optionality beyond the traditional practice of commercial timber production.
“Natural capital solutions are uncorrelated with timber markets and can provide diversification to a natural resource portfolio,” TIR Managing Director, Economic Research and Analysis, Chung-Hong Fu, explained on the March 26, 2025, at the Cercle Cité, Luxembourg.
In his remarks, Fu noted that while many natural capital markets operate on a smaller scale than traditional forest product markets, they can enhance a portfolio through additional diversification and potentially improved risked-adjusted returns.
